How to use Skills to positively impact D&I

Equal access to learning and opportunity can significantly improve diversity and inclusion in various ways. When individuals from diverse backgrounds have equal access to education, training, and career opportunities, it creates a more level playing field, allowing people to contribute their talents and perspectives to the workforce and society as a whole.

I’d like to start with the motivation factors to what Diversity & Inclusion (D&I) is so important by sharing some compelling statistics.

• Diverse companies enjoy 2.5 times higher cash flow per employee.
• Boston Consulting Group (BCG) study looked at companies with diverse management teams and found that, on average, they enjoyed a 19 percent increase in revenuecompared to their less diverse counterparts as of 2018.
• Gender-diverse companies and executive teams outperform less gender-diverse peers. In 2020 companies in the top quartile of racial and ethnic diversity outperformed by 36 percent in profitability compared to fourth-quartile companies.
• 3 in 4 job seekers and workers prefer diverse companies and coworkers. According to a 2020 Glassdoor survey, 76 percent of job seekers and employees polled said a diverse workforce was an important factor for them when evaluating job opportunities and companies.
• 40 Percent of Employees Want Their Company to Be More LGBTQ+-Inclusive and feel their companies aren’t doing enough to inclusively hire more members of the LGBTQ+ community.
• In 2020, companies with more than 30 percent women executives were more likely to outperform compared to companies with 10 to 30 percent.
• Global GDP could Increase $13 Trillion by 2030 by Making Workforce Equally Gender-Diverse according to McKinsey & Company.

Yet despite advancements in D&I initiatives, challenges still remain. Here are just a few

1. Underrepresentation: Certain groups, such as women, racial and ethnic minorities, and people with disabilities, were still underrepresented in leadership positions and certain industries. As of January 2023, women make up 10.6 percent of the CEO workforce at Fortune 500 companies* Of the 26 percent of women in the C-suite, just 5 percent of those leaders are women of colour. As of 2022, six Fortune 500 companies have a chief executive officer who is Black.
2. Unconscious Bias: Unconscious biases continued to affect decision-making processes in hiring, promotions, and evaluations, potentially hindering the advancement of underrepresented groups. Only 87 women, and 82 women of colour, are promoted for every 100 men promoted to manager. As a result, men significantly outnumber women in managerial positions*
3. Inclusive Culture: Creating an inclusive culture remained a challenge for many companies. It required ongoing efforts to address micro-aggressions, foster open dialogue, and create an environment where all employees felt valued, respected and equal access to opportunities.

What are the solutions;

If we can provide equal access to learning and opportunity it is a relatively easy step to take and we can really enhance diversity and inclusion. Here are some of the key actions that can have a compounding effect;

1. Skill Development: enable individuals to develop and enhance their skills, which can lead to improved job performance and career progression. This, in turn, fosters a sense of belonging and inclusion within the workplace.
2. D&I Education:Activating a Diversity Skills Passport to provide everyone collective access to learning paths that will elevate the inclusive culture of an organisation or institution.
3. Representation: ensures that individuals from diverse backgrounds have the chance to pursue careers in various fields. This can lead to increased representation of underrepresented groups in industries where they were historically marginalised.
4. Reduced Bias: it helps reduce biases and stereotypes that might have limited certain groups in the past. Talent and potential become the primary criteria for selection and advancement, rather than factors related to gender, ethnicity, or socioeconomic background.
5. Diverse Talent Pool: companies can tap into a more diverse talent pool, which brings a wide range of perspectives, experiences, and skills to the organisation. This diversity can foster creativity, innovation, and problem-solving.
6. Inclusive Workforce: promotes an inclusive workforce where all employees feel valued and supported, regardless of their background. It can lead to a more welcoming environment, where individuals are encouraged to bring their authentic selves to work.
7. Leadership Opportunities: can empower individuals from diverse backgrounds to take on leadership roles within organisations. Diverse leadership teams are more likely to understand and address the needs of a diverse workforce, creating a positive impact on company culture.
8. Economic Empowerment: can help break the cycle of poverty and promote economic empowerment within marginalised communities.
9. Social Cohesion: When people from diverse backgrounds have equal access to learning and opportunity, it can promote social cohesion and reduce divisions within society.
10. Innovation and Market Insights: A diverse workforce with access to equal learning opportunities can better understand and cater to a diverse customer base. This can lead to increased innovation and the ability to address the needs of a broader range of consumers.

Summary

We know D&I investment makes sense and what better time than as part of the European Commission's Year of Skills to fully embrace what democratised access to inclusive learning and opportunities can have. It is therefore important for governments, educational institutions, and industry to collaborate and invest in creating inclusive policies, programs, and practices. This includes addressing systemic barriers, providing scholarships and mentorship programs, enabling equal access to learning and career progression, reduced biassed discovery for promotion, implementing bias training, and actively promoting diversity at all levels of an organisation. By embracing equal access to learning and opportunity, societies can unlock the full potential of their diverse populations and foster a more inclusive and equitable future. Perhaps only then can skills shortages can then be a forgotten term!